IT Leaders of the Now Economy

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OSRA 2002
IT Leadership in the New Landscape
Maryfran Johnson Editor in Chief
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New Image Anyone?

• False alarms (Y2K)
• Dot.com bubble (burst)
• Tech stocks (in freefall)
• High-tech layoffs (rising)
• Software viruses (rampant)
• Microsoft behavior (monopolist)

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We Depend on Technology in Times of Crisis

• Cell phones and email
• Websites
• Videoconferencing
• Telecommuting
• Disaster recovery services
• Wireless LANs

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The Power of the IT Volunteer Spirit
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Sept. 10, 2001
HP/Compaq merger worries Microsoft breakup
musings Peoplesoft project ends up in court
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Oct. 22, 2001
Air Security Concerns and IT Security
Overhaul E-Signature failure Anthrax threats
expose public health IT systems
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Our Top 10 for 2002

• Security/Privacy Infrastructure Protection
• Supply Chain Integration
• Government Legal Issues
• Data Management
• Wireless Mobile

• Web Infrastructure Web Services
• Enterprise Systems
• IT Management Leadership
• Careers Training
• Server Operating Systems

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Always On Your Minds

• Security Checks Balances
• Infrastructure Leverage
• Business continuity in the supply chain
• Managing partners and vendors (especially
  Microsoft)
• Emerging Web services, wireless, CRM
• Proving ROI on IT projects

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Is it time to go back to the days when IT
supported the business rather than became the
business?
Enron Lesson Tech is for Support, CW, 2/18/02
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What the 90s showed us was how much IT can do.
The next decade is going to be about businesses
finding ways to harness all that creativity and
use it
Charlie Feld, CEO, The Feld Group, CW, 2/18/02
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Balancing The Bottom Line with Innovation
Creativity

• Dont dismiss the idea of information creating
  value
• Integrate applications rather than creating new
  infrastructures
• Conduct business with customers via multiple
  channels (not just the Web)
• Seek out natural alliances between IT business
  units (such as logistics, distribution)
• Find some solid ROI figures for the CFO

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Brace Yourselves for Big Brother Meets IT

• National ID card, privacy debates
• Expanded use of biometrics (facial recognition,
  finger imaging, etc.)
• Wider use of wiretapping
• Email monitoring
• Credit card tracing
• International data-sharing

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Proposed CIO Cyberthreat Response Reporting
Guidelines

• FBI Secret Service support standard procedures
  for businesses to use in reporting serious
  hacking incidents
• Only major incidents that damage property,
  revenues would be reported
• Big question How will this information be
  handled?

Cybercrime Reporting Procedure Draws Fire, CW,
2/18/02
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Proposed Increased Federal IT Spending

• White House seeking IT security spending increase
  from 2.7 billion to 4.2 billion
• 64 increase will boost total IT spending to 8.1
  of feds proposed 52B IT budget in 2003
• Average share of private-sector IT spending in
  company budgets is 3-5

Source IDC, U.S. govt documents, CW, 2/18/02
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Thinking Security in a Post-911 World

• Revisit IT budget staffing with security in
  mind
• Make sure critical systems can be replicated
  remotely coordinate security, infrastructure
  protection efforts
• Prepare for govt regulations in encryption,
  employee monitoring, info protection and data
  access

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Dealing with Internal Security Threats

• Develop publish access policies
• Check employee backgrounds (contractors, too)
• Classify corporate information and control
  access segment networks, where possible
• Get full disclosure from trading partners and
  service providers
• Dont forget physical access checks

Security experts advice, CW, 10/15/01
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Web Services An umbrella term for the broad
movement to use the Internet to automate tasks in
new ways
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Web-Enabled Processes to the Rescue?

• Can allow easier, more cost-effective connections
  across applications
• Better access to best-in-class apps no matter
  where they reside
• Provides set of tools to take legacy apps and
  node-enable them

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Other Benefits of Web Services

• Not a new business model
• Uses existing Internet standards
• Provides integration more painlessly
• Many application service vendors rolling out
  web-service-enabled versions of their software

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Collaborate or Integrate?

• Only 16 of users planning to use web services
  with new business partners
• While 60 will use web services for enterprise
  application integration (EAI)
• And 53 will use to integrate applications with
  partners and customers

Jupiter Media Metrix survey, Sept. 2001
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Web services architecture will create an
environment where companies will be able to
access resources wherever they reside in
whatever enterprise.
John Hagel III, Harvard Business Review and CW,
Fall 2001
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Web Services Tools Standards

• WSDL Web Services Description Language.
  XML-based, used to describe services offered and
  provide e-access
• SOAP Simple Object Access Protocol allows
  operating systems to speak with each other using
  http and XML
• UDDI Universal Description, Discovery and
  Integration Web-based Yellow Pages to list your
  services

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User Examples of Web Services

• GM connects internal apps to 8,000 auto dealers
• GM and partners keep existing systems in place
• More flexible in efficiently serving customers
• Citibank offers major payment processing engine
  as a Web Service to electronic markets
• Turns internal resource into revenue generator

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GE Global Exchange Fuel Quest, Inc.

• Creating a Web services-based EAI program
• Lets fuel distributors plug into GXS-hosted
  trading network of U.S. refiners
• Electronic bills of lading downloaded directly
  into financial systems
• In an industry where fax machines were a novelty
  a decade ago, this is a big deal says one
  petroleum distributor

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CRM
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Phase 2 Leaner, Meaner CRM Projects

• The New Modularity separating business rules
  from the system code
• The U.N. Approach Appoint an ambassador to
  translate between IT and marketing
• Capture only the info that matters (and leads to
  revenue growth)

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Even in a down market, were still investing
heavily in both technology and integration. We
still invest in things that are critical to the
business
Robert Seidman, SVP, Charles Schwab Corp., CW,
2/18/02
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Thinking About Tomorrow
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Girls Warm Up to IT

• 18 of teenage girls online believe they can hack
  into their school computers
• Instant messaging the killer app for gender
  bending?
• Today only 25 women in IT declining enrollments
  in computer science
• Thinking about technology as a socializing force

Girl Scouts survey, 1,000 young women aged
13-18, Feb. 2002
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Three Questions to Ask

• Whats the next transformational technology?
  (Its still the Internet)
• Whats the business advantage to be gained?
  (Efficiency for IT value for customers)
• Whatll it take to get to the next business
  level? (Look to customer/supplier processes for
  answers)

Jim Champy, Perot Systems Corp, Cambridge, MA
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The Brainiacs Speak Fast Forward to 2012

• Devices are wafer-thin, high-performance, with
  always-on-access to the net
• Large, high-resolution monitors (less than 1k)
• Head-mounted, eyeglass displays no longer just
  for weirdos
• Cell phones with small-color LCD screens and
  smart-card readers
• Speech recognition finally works well

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Extremely Cool but Unlikely

• The ultimate wireless home network low cost,
  easy to install, totally interactive, with clear
  standards for audio, video, PCs, etc.
• A golf ball with an embedded tracking system
• Protective operating systems that guard users
  time and prevent information overload
• Collaborative health machines that can diagnose,
  monitor, treat and prevent diseases

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The Market is Missing The Boat On

• E-Wallets truly secure, pervasive, accepted for
  use with credit card purchases, bank accounts,
  ID, passport, corporate ID and security cards
• Truly Useful Cell Phones without competing
  system and standards reliable, cheap, ubiquitous
• Interface Design Advancing beyond the clouds of
  Windows
• E-Learning High-tech fix for education as a
  vast, semi-automated learning machine

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Light travels faster than sound. This is why some
people appear bright until you hear them speak
Some Anonymous Smart Aleck